The Bitcoin price has fallen below $100,000 for the first time in four months, wiping out nearly 6% of its value within a single day. The drop can be attributed to a strengthening US dollar, outflows from Spot Bitcoin ETFs, and massive liquidations across the crypto futures market, causing investors to question whether the long-anticipated bear market has finally arrived. Notably, Bitcoin’s correction also rippled through the entire crypto sector, where the total market capitalization fell below $3.5 trillion for the first time in months.
Bitcoin Price Crashes Below $100,000
Bitcoin has spent the past 30 days with a lack of clear bullish price action. Although it started October with a rally to break above $126,000 for the first time, which was a new all-time high, the majority of October was highlighted by the leading cryptocurrency struggling to leave the $107,000 to $110,000 price range behind.
The prolonged period of sideways trading hinted at a lack of strong buying pressure, and the weakness has spilled into November. This has, in turn, caused the leading cryptocurrency to crash below $100,000 in the past 24 hours, albeit only for a short period.
A surging US dollar has become one of the biggest headwinds for Bitcoin’s recent price action. The dollar index, which tracks the dollar’s strength against a basket of major currencies, climbed above 100 for the first time since August. This move reflected growing investor preference for safer assets, especially as uncertainty around the Federal Reserve’s next interest-rate decision continues to hang over global markets.
The impact of this has been most visible in the crypto sector, where confidence has eroded quickly. Bitcoin and Ethereum fell massively as traders exited leveraged positions en masse. The sudden sell-off created a chain reaction of liquidations across exchanges that wiped out billions of dollars in futures positions within hours.
In Bitcoin’s case, its market cap dropped by as high as 5.8% in just 24 hours, falling to around $2 trillion. Trading activity has surged massively during the downturn, crossing over $100 billion.
Is A Bear Market On The Horizon?
The crash below $100,000 opens up questions about whether the bear market has officially begun. The Bitcoin price is still up 8% on a yearly basis, but the scale of recent losses alongside the rising US dollar index points to a more cautious phase ahead. At the time of writing, Bitcoin has already rebounded above $100,000 and is now pushing towards $102,000. The rebound means that a section of traders has seized the opportunity to accumulate more during the dip, and Bitcoin is now trading at $101,770.
If the Bitcoin price slips below $100,000 again, then it opens up the possibility of an extended decline towards $90,000. On the other hand, bullish technical analysis shows that the crash caused Bitcoin to touch its 50-week moving average, a level that’s always preceded a new all-time high.
The last time this support was tested was in April 2025, and what followed was a powerful rebound that sent the Bitcoin price soaring more than 50% to reach $125,000 in the months that followed.
Featured image created with Dall.E, chart from Tradingview.com
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